JOURNAL ARTICLE

"You’ve Got to Set Your People Up to Succeed".

  • Published In: Harvard Business Review, 2023, v. 101, n. 3. P. 56 1 of 3

  • Database: Business Source Ultimate 2 of 3

  • Authored By: Prokesch, Steve 3 of 3

Abstract

The article focuses on the comprehensive transformation of Sam's Club, a membership warehouse retailer owned by Walmart, led by Chief Product Officer Tim Simmons. Since June 2019, Sam's Club has overhauled its operating model by reducing prices and stock-keeping units (SKUs), redesigning jobs into cross-trained work groups, implementing digital tools such as the Own Your Inventory and Ask Sam apps, and increasing employee wages by an average of 31%. These changes have resulted in a 43% increase in net sales (excluding membership fees), sustained double-digit comparable-store sales growth, and significantly reduced employee turnover. The integration of technology and wage investments aimed to improve operational efficiency, associate satisfaction, and member experience, demonstrating a strategic balance between lower prices and higher wages to drive business success.

Additional Information

  • Source:Harvard Business Review. 2023/05, Vol. 101, Issue 3, p56
  • Document Type:Article
  • Subject Area:History
  • Publication Date:2023
  • ISSN:0017-8012
  • Accession Number:162966602
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